• Risk-on rally in the Asian equities on the back of upbeat Caixin China’s manufacturing survey failed to support USD, which corrected lower across the board
  • Profit taking was seen after the US dollar index faced rejection at eight-month highs near 100.35 and slipped back to 100 mark
  • The greenback had earlier popped above 123.00 for the first time in a week, but fell sharply to hit lows of 122.64
  • US ISM manufacturing report due later today will continue to influence the pair, traders will aslo track sentiment across equity markets
  • Strong support for the pair is placed at 122.30 (Double bottom – Nov 27 & 24 Low), while immediate resistance is seen at 123.28 (Today’s High)

Recommendation: Good to go long on dips around 122.70, SL: 122.20, TP: 123.25

The material has been provided by InstaForex Company – www.instaforex.com